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So What kind of ROI would a Business Expect from Corporate Wellness?

March 29, 2019

So What kind of   ROI  would a Business Expect from Corporate Wellness?

There is no organization that implemented a robust corporate wellness program and measured outcome that did not report a positive Return on Investment ( ROI).

The key word here is ‘ measurement’. Many organizations implement wellness for their employees but often they either do not include a  measurement component or they include some form of partial measurements, such as satisfaction surveys.

Much of the research on ROI in corporate wellness has been reported by organizations in  North America, primarily the U.S. and to a lesser extent in Canada. In general,  ROI   has been reported in terms of reductions in absenteeism  ( $3.50/dollar invested), health care costs ($4.50 /dollar invested),  sick leave( 28%)  and disability claims ( 30%). Overall ROI reported  by  major organizations   vary from $5.95 (Bank of America), $4.60 ( Citibank),  $3.50 ( General Mills), $3.10 ( PacBell), $2.74 ( BC Hydro) and $ $2.05 ( DuPont). Based on a review of 13 different studies, the ROI varied between $3.45 and $5.81 /dollar invested.

Research indicates that an ROI between $3.00 and $15.00 per $1 dollar invested is achievable within the first 12 to 18 months with quality workplace wellness.  When it comes to specific wellness interventions, the following average ROI  has been  reported per $1 dollar invested:

– Health Risk Assessments–$6.04

– Fitness Programs————$4.90

-Wellness Coaching———–$4.50

-Smoking Cessation———–$3.50

-Flu shots———————–$2.10

-Obesity Management——-$ 1.17

However, the highest return on investment, $17.50, was achieved with the launch of a Comprehensive Online Wellness Portal.

As demonstrated above, different ROI  values are reported by different organizations. The variability in these findings is largely due to factors such as the components of workplace wellness, the length of the different interventions and the types of outcomes measured. The main point of note, however,  is that a positive ROI  is our expected outcome of a quality program. In fact, such a wellness program is cost-neutral if one takes into consideration the cost savings resulting from the program.

A quote from the World Economic Forum report titled Working Towards Wellness: The Business Rationale, sums it best: “We have to move from illness to wellness. There is no choice. It’s not philanthropy. It’s enlightened self-interest”( Shrinivas M Shanbhag, Medical Advisor, Reliance Industries, India).

 

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